Mining firm faces lawsuit

Mining firm faces lawsuit

MUARA TEWEH, Central Kalimantan: Dozens of residents in Luit
Raya in the Permata Intan subdistrict filed a lawsuit against
gold-mining company PT Indo Muro Kencana (IMK) over a land
dispute.

In the lawsuit, residents are demanding the company pay
compensation amounting to Rp 2.6 billion (US$286,501), said Herly
S. Penyang, a representative of the 35 neighbors, after a meeting
with North Barito Regent Badaruddin.

The demand was first made in 1987 and 1988 when the company
resumed its mining activities in an area covering three
subdistricts -- Tanah Siang, Kemurung and Permata Intan.

"We've often pushed our demand for compensation, but there has
been no positive response as PT IMK defends that the compensation
issue is over," he said.

Central Kalimantan Governor Asmawi Agani has urged the
regional administration in the North Barito district to settle
the problem.

Without giving an exact figure, Herly Penyang said that the
villagers agreed to reduce the amount of the compensation. (08)